Why is cement consumption decreasing sharply?

The scarcity of sand, construction stone as well as the skyrocketing prices of some materials (sand, bricks) in many localities not only slow down the progress of projects but also seriously affect cement consumption.

From the beginning of May until now the price construction sand In many provinces and cities, it has increased by 5-10% compared to the end of 2024, commonly 140,000 - 400,000 VND/m3. Especially in the "hot spot" Quang Nam - Da Nang, it skyrocketed. 700,000 - 800,000 VND/m3, even up to 1,000,000 VND/m3 in some places.

Report of Institute of Construction Economics shows sand prices and stone Construction rose 0.29-1.3% in May alone, after a similar increase in April.

The increase in sand prices has increased the cost of ready-mix concrete by 10-15%, forcing contractors to suspend or cut orders. Meanwhile, concrete mixing plants have had to stop or reduce their capacity, leading to a decrease in demand for clinker/cement. bag, loose

The escalation of construction sand prices also leads to a chain effect when price increase concrete, delaying projects and causing cement consumption in May to fall more than 20%.

Cement consumption is difficult.

The Institute of Construction Economics - Ministry of Construction explains that the reason why construction sand and stone prices have increased is because of two types of material This is widely used for traffic works and projects under construction across the country.

Branch cement Currently in a saturation phase, with a declining consumption growth rate and fierce price competition pressure due to supply exceeding demand by about 60 million tons. Domestic consumption has not increased significantly in the past 5 years, and has been stagnant for some years, only around 60-65 million tons/year. Now, there is an additional chain reaction from the scarcity of supply of key materials, making consumption even more gloomy. Currently, cement production lines are only operating at an average of about 75% of total design capacity.

Mr. Ngo Duc Luu - Acting General Director of Vietnam Cement Corporation - said that domestic cement consumption demand is only around 60 - 65 million tons, while supply is double, with a large surplus, making production and consumption very difficult. Political conflicts and tariffs also have a significant impact on cement production and business.

Recently, cement consumption has slowed down due to the scarcity of construction sand, and the price of this material has increased by over 1 million VND/ton (higher than the price of cement). brick Construction also increased rapidly, while cement bore the heavy burden of investment.

According to the calculation of the Ministry of Construction, the demand cement consumption In 2025, it is expected to increase by 2-3% compared to 2024, reaching 95 - 100 million tons. Of which, domestic consumption will reach about 60 - 65 million tons, and export will reach about 30 - 35 million tons. If the high scenario is achieved, the whole year's consumption will reach 100 million tons, an increase of 5 million tons compared to 2024. In the low scenario, consumption will only reach about 90 million tons.

Source: https://baoquangninh.vn/vi-sao-tieu-thu-xi-mang-giam-manh-3363654.html